Endowment matures this year. What next?

[LHRFlightman]

Took out an endowment in 1988. As above it matures this year and while in expecting a shortfall of about 8k I've planned for it. So, what's the best thing to do with the £45k (that's based on last years projections).

Pay it off the mortgage or something more creative. Oh and coke and hookers are out the wife says no.

PS

I'm financially hopeless.

[Sarnie]

Is your mortgage all on Repayment?

[happychap]

Out of interest, how much is left to pay on the mortgage, what is your age, is your employment secure. These factors would influence me as to what to do with the money

[LHRFlightman]

Mortgage part repayment, part endowment.

Current mortgage is 109k,(being realistic it's worth £205k) I'm 47, full-time employment.

Thanks all.

[megaphone]

Pay 40k off the mortgage and enjoy the rest. You should be aiming to pay your mortgage off in the next few years so you can start saving for your retirement. Do it whilst interest rates are low.


ETA. Make sure you can pay lump sums off your mortgage without penalty. Also, if you're on a very good interest rate, ie 1% then you may consider investing the money somewhere to earn more than that, being ready to pay a chunk off the mortgage when interest rates go up.

Edited by megaphone on Monday 14th January 13:07

[happychap]

Depends what you want, a quick sense of satisfaction with hookers and coke, or pay £40 k of the mortgage and keep over paying the exsisting payment on the mortgage to reduce the term. You will then benefit if you move later on as you will have more equity to play with.

[Newc]

Adding my vote to the "spend a bit on a nice holiday this summer, and stick 40k on the mortgage" camp.

Also, do not then reduce your monthly mortgage payments. In fact, if your monthly outgoings allow it, put the monthly amount you were putting into the endowment into the mortgage and increase the monthly payment..

[LHRFlightman]

Sounds like, for once, we're on the right track.

We've earmarked 3k for the family holiday. The rest will Go on the mortgage. The money we currently pay into the endowment will be added to our mortgage payment and we've already been overpaying £50 a month over the last 18 months,

Anyone recommend us seeing a decent financial advisor or do you think we've already done enough?

Thanks again.

[plover]

One thing I'd add to above, if you have any other loans/credit cards look at paying them off ahead of the mortgage as they are liable to be a higher rate than (unless it's a 0% balance credit card) And then use what you were paying on these loans to pay off your mortgage.

If you haven't already, consider putting a few grand away in an emergency fund; assuming you won't spend it anyway ! I put my emergency fund in premium bonds, not for the rate/winnings; but because it's not instantly accessible, but can get to it in a few days if needed.

[Stu R]

Well if nobody else is going to say it I will, 911 Turbo and waste what's left on the mortgage.

[LHRFlightman]

Stu R said:

Well if nobody else is going to say it I will, 911 Turbo and waste what's left on the mortgage.

Too much.










But Boxters are fairly cheap nowadays.

[davepen]

LHRFlightman said:

Mortgage part repayment, part endowment.

Before you start looking in the classified for a Boxster, the Mortgage company (BS) will have a charge against the endowment, the life insurance company will not send you a cheque unless they get letter from the BS saying the BS have no further interest.

In my case, I'd changed to repayment and paid off the mortgage. C+M still needed letter from the Portman (sic). Eventually they agreed the Portman was now called the Nationwide and sent a cheque.

So rather than a nice holiday you are more likely to need to find the £8K shortfall you mentioned PDQ.

[Sir Bagalot]

LHRFlightman said:

Sounds like, for once, we're on the right track.

We've earmarked 3k for the family holiday. The rest will Go on the mortgage. The money we currently pay into the endowment will be added to our mortgage payment and we've already been overpaying £50 a month over the last 18 months,

Anyone recommend us seeing a decent financial advisor or do you think we've already done enough?

Thanks again.

When you reduce your mortgage debt don't let them adjust your monthly payment, that way you're paying even more off.

[Skyedriver]

If your mortgage is say 2.49% and you can get say 5% dividends from some shares, would it not be better to buy shares>

[btsidi]

Skyedriver said:

If your mortgage is say 2.49% and you can get say 5% dividends from some shares, would it not be better to buy shares>

Shares can go up or down. You may earn 5% dividend and lose your shirt, or 5% dividend and make a £million

[Skyedriver]

btsidi said:

Shares can go up or down. You may earn 5% dividend and lose your shirt, or 5% dividend and make a £million

Oh yes, very true.....